NEW YORK (Bloomberg) -- Daimler AG's Mercedes-Benz luxury-car unit said it may double U.S. diesel vehicle sales after introducing models that meet emission regulations in all states.

Mercedes will start marketing cars and sport-utility vehicles with Bluetec diesel motors that comply with standards in California, the country's toughest, in August or September, said Ernst Lieb, the unit's chief executive officer for the U.S.
“When we're able to have diesel in all states we'll be in a position to possibly double the number of diesels we sell,” Lieb said in an interview in New York. Cleaner models will include re-engined versions of the M-, GL- and R-Class SUVs.
Diesel's share of the U.S. car and light-truck market will almost quadruple to 11.8 percent by 2015 as automakers respond to emissions rules and demands for improved efficiency, according to a study by J.D. Power & Associates. The fuel, which powers about half the new cars sold in Europe, has been held back in the U.S. because consumers associate it with heavy trucks and many gas stations don't provide it.
California and four other U.S. states restrict sales of new diesel autos because they emit soot and gases linked to lung and heart disease. Mercedes already sells a diesel version of its E-320 sedan, equipped with a Bluetec engine which meets Californian regulations, in all 50 states.
--------------------------Smaller SUV
Stuttgart, Germany-based Mercedes-Benz, the second-largest maker of luxury vehicles after Munich-based Bayerische Motoren Werke AG, will put the new GLK small SUV on the market in early 2009, providing a “nice” boost to sales, Lieb said.
The GLK competes with BMW's X3, which accounts for much of the difference in the two brands' vehicle sales.
Daimler, which this year predicts record sales in the U.S., its second-largest market, has no plans to offer the Mercedes-Benz B-Class compact van in the country, said Lieb, who spoke Dec. 11. Efforts to sell the model there were dropped in 2005 as the dollar sank against the euro, reducing the vehicle's profitability.
The dollar has this year declined 4.8 percent against the European currency, touching a record low of $1.4967 on Nov. 23.
“The dollar is a topic we're dealing with,” said Lieb, adding that Mercedes's U.S. operations are profitable at the current exchange rate. “We have to find efficiencies in the organization,” he said.